NEVER post copyrighted questions. Always state where questions come from. We take copyright violations very serious. Any copyrighted materials will be removed and the posters account will be deactivated.

You are managing a shopping complex construction project. You have carried out a number of similar projects in the past and you want to outsource the electrical work to a contractor company. The last time you used a Cost Plus Fixed Fee contract but you were not satisfied with this approach because you didn't have much control over the outsourced work. What should you do this time to ensure that you have more control over the outsourced work?

A. Micro-manage the contractor's project management processes
B. Use a Cost Plus Incentive Fee Contract (CPIF)
C. Use a Teaming Agreement
D. Change the contractor
HINT: You have to make sure that the performance of the contractor is better this time.
All our questions are updated to the latest PMBOK® Guide standard. Stop by at www.pm-prepcast.com/freesimulator and try the PMP Exam Simulator free for 3 days. We also offer 110 free questions at www.free-pm-exam-questions.com. We are a PMI Registered Education Provider.

Answer and Explanation:
The correct answer is B.

Using a Cost Plus Incentive Fee contract will help you control the contractor.